Made Redundant And Company Made Insolvent

My1fan2wy

On Monday 20th July, I went into the office as usual and was told by my Director that I had been made redundant and the company is going to be made insolvent!

I have worked for the company for over 13 years. I knew the company was in trouble, but I assumed the "sister company" would take me on. On Friday 17th July an agreement was signed between the 2 companies disolving any relationship between them.

Because the company has been made insolvent, the director is unable to pay me the 12 weeks notice mentioned in my contract along with the redundancy money due to me. He says that the company can't even afford to pay me my wages up to the 20th July, but he will probably do that out of his own pocket!!!!

I have never had to claim any benefit before but I've signed up for JSA and received an RP1 form to fill in, but can't do this until the IP (Insolvency Practitioner) has been appointed. I suppose there is no more that I can do at present, but I just want someone to re-assure me that I WILL get what's owed to me! I am 52 years old and having worked for the company for over 13 years am finding it very daunting being in this situation.

Is there any more I should be doing at the present (except looking for jobs which I am of course doing)?

GotToChange

Hi -
So sorry to hear of your news (also to see so few replies but I think this board is - iroically I know - busier Mon-Fri......) and also that I have no answers for you but feel for you in your predicament.

I'm not sure how the statutory redundancy (from the Gvnmt?) works when the company has become insolvent; think ACAS might have some answers (website or helpline) with that although don't know for sure - or even a trawl through this thread might give you some indication when you are effectively a creditor in bankruptcy......

As for JSA - you are on the right track - you don't say whether you are on your own or with a partner/husband/kids or you home-ownership position but your JSA claim will highlight those areas. Were you receiving Tax Credits (they will be affected so important not to let that slip through and be clobered for an overpayment)?

Post again if there's something I haven't covered.

x

BlueIsTheColour

Sorry to hear your news, essentially once the RP1 is returned the Redundancy Payments office have confirmed the company is insolvent, you can claim your redundancy, statutory notice of 12 weeks in your case, any outstanding holiday pay up to maximum of 6 weeks and any wages owed up to maximum of 8 weeks, these amounts can all be capped at £350 per week though, or your weekly wage if lower than that.

Hope that helps a little